The recent higher valuations for Bitcoin and other crypto currencies like Ethereum have been driven by US dollar weakness. The US dollar appears to be at the beginning of a crash, which could mean much higher crypto prices over the coming months.
Below is a comparison of the Bitcoin chart and the US dollar index (all charts are from tradingview.com):
The top one is for Bitcoin and the bottom one is the US Dollar index. Notice how closely the important Bitcoin breakout (at around $1300) was followed by a US dollar index breakdown. Since the breakout, the Bitcoin price has continued much higher, while the US dollar index is lower.
The same can be said for Ethereum – see the following chart:
Ethereum has made a nice bottom at the end of 2016, while the US dollar index was topping.
These higher prices are likely to continue as the US dollar breaks down further.
Below is a slightly longer-term chart for Bitcoin vs the US dollar index:
Bitcoin has made a nice rounding bottom as indicated in red. This bodes well for much higher prices over the coming months. Despite any possible corrections, Bitcoin appears to be in a blow-off rally, and prices could be expected to go to new all-time highs.
Note that this is not financial advice and I am not responsible for you trading decisions – do your own due diligence.
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My previous articles:
https://steemit.com/gold/@hgmsilvergold/the-greatest-transfer-of-wealth-what-you-need-to-know
https://steemit.com/silver/@hgmsilvergold/if-you-are-a-silver-and-gold-stacker-this-is-for-you